Buy MTNL in case of Reliance-MTNL symbiotic relationship: Rajesh Jain

Rajesh Jain, Market Strategist spoke to ET now on telecom stocks.

I want to also question you about the entire telecom space. What would your call be on MTNL because valuation wise, it is one of the cheapest telecom stocks available in the whole world? News coming in this morning that Reliance may actually be selling 3G services, that's adding some bit of excitement to the counter?

These are early days to take a call on the Reliance-MTNL symbiotic relationship if any but MTNL for a very long time has ceased to be a stock that excites you on the telecom front but excites you more on the embedded real estate value.

So that itself makes it a compelling buy but if indeed there is something happening on the 3G front through a symbiotic business association with Reliance or MTNL is likely to see a merger with BSNL, then you are likely to see some excitement in terms of BSNL visiting the markets and the potential for MTNL is fairly strong and at the current ticker prices.

The downside risk for any investor whether institutional or retail is very low, so I suspect you will soon see a lot of buy reports on MTNL, particularly if there is some substance to the news report that you just mentioned.